“Selling Pressure Subsides”...XRP, Has It Really Bottomed Out?

▲ XRP/ChatGPT generated image

Although the downward pressure on XRP is noticeably subsiding, it is still too early to say that buying pressure has regained dominance.

According to crypto media outlet U.Today on August 7 (local time), XRP is still under downward pressure on the daily chart, but recent price movements indicate that bearish momentum is gradually weakening. As it trades in an increasingly narrow range above the psychologically important $1 mark, selling forces appear to be losing confidence, but buying forces have not yet regained control.

The overall trend is clearly bearish, as all rebounds have stalled below key moving averages. However, the nature of the recent consolidation phase differs from the strong selling pressure observed at the beginning of the year. Instead of a sharp decline, XRP has entered a low-volatility phase where neither side has been able to make a decisive move.

Technically, XRP remains below all major moving averages. The 50-day moving average continues to decline around $1.09, and the 20-day moving average has flattened out slightly above the current price. With the 100-day moving average at around $1.20 and the 200-day moving average at around $1.39, buying forces still have a long way to go to reverse the long-term trend.

However, there is one positive sign within this bearish structure: the selling forces are unable to sustain their momentum. The price has tested the $1.03-$1.05 range multiple times but has not led to another strong wave of liquidations. Instead, the bodies of the candles are getting smaller over time, suggesting that selling pressure is gradually being absorbed. Momentum indicators also support this trend. The Relative Strength Index (RSI) has not approached the oversold zone but remains around 40, below the neutral line of 50. While this has not yet led to a bullish reversal, it is a sign that bearish momentum has significantly decreased.

The decrease in trading volume in recent weeks is another sign that market participants are waiting for a catalyst rather than actively chasing short positions. Although the direction remains unclear until XRP breaks out of its current range, this type of compression often precedes a larger move. Reclaiming the 20-day and 50-day moving averages will be the first signal of a momentum shift for buying forces. Until then, the short-term support level around the psychologically important $1 continues to attract buying interest.

[Article Summary]

-XRP continues its bearish trend below all major moving averages, but selling pressure appears to be gradually weakening.

-Selling volume lost strength in the $1.03-$1.05 range, and the RSI around 40 indicates a slowdown in bearish momentum.

-Reclaiming the 20-day and 50-day moving averages will be the first signal of a bullish reversal, and until then, the area around $1 is a key support level.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*